Oversubscriptions to the offshore oil giant's bond offer reflected a high domestic and regional demand
CNOOC - China's dominant offshore oil producer - saw its US$500 million bond issue 14-times subscribed and priced at the lowest yield achieved by an Asian corporate bond issuer, sources close to the deal said.
The low yield, which means CNOOC has locked in low cost financing for an extended period of time, was achieved as yields on US treasury bonds hit a 45-year low.
In a statement, the company said its US$200 million, 10-year tranche of the bond issue was priced at 4.29 per cent, or 77 basis points above the 10-year US treasury yield.
The US$300 million, 30-year tranche was priced at 5.68 per cent, or 118 basis points higher than that of the corresponding US treasury.
The 10-year tranche received subscription interest of US$4 billion and was 20-times subscribed, while the 30-year tranche received orders worth US$3 billion and was 10-times subscribed, the sources said.
